For those who don't follow the financial news with ref to the
motor industry, Ford has made a loss of nearly $9 billion in the
last 3 months. (Yes, that's 3 months, not 3 years.)
This shows the future of companies that rely heavily on sales of SUV's,
or Chelsea Tractors. The era of the gas guzzler has come to an end.
If the US goes into a prolonged recession, due to the current credit
crunch, Ford will run out of money by the end of 2009 and will go
into Chap 11 bankruptcy. Their only hope will be to ramp up
production of smaller European style cars and hope to gain
market share with them in the US. They are already closing 3
SUV production lines and switching them to smaller fuel efficient
cars.
SUV's are going to be pretty much worthless in the US shortly, some
used car lots are already refusing to take them in part/ex.
This will happen in the UK as well. So maybe best to think on
a bit if you are thinking of buying a gas guzzler with respect to
future resale value and how much capital you'll lose in depreciation.
General Motors and Chrysler are also in a bad way. General Motors
is already engaged in ramping production of their smaller European
models for sale in the US. If they don't get their act together soon,
they also will face Chapter 11 Bankruptcy 2009/2010, the same as
Ford.
See Link ref Ford.
http://www.markeidiotch.com/news/story/ford-swings-87-billion-loss/story.aspx?guid=%7B2C5792D6%2DB1B6%2D43D7%2DAC35%2DC8C3BA340EE8%7D&dist=TNMostReadHave a nice day, you all!